Vol. 3, No.1, Quarterly Issue : January, 2014

E-mail : npa_society@yahoo.co.in

NEWS LETTERNEWS LETTER

NARIMAN POINT ASSOCIATION

occupancies of the offices and the future of the area. One of thepoints made out is the coming together of the societies to discussredevelopment. I personally feel that it is almost impossible toredevelop the area with the cooperation of all the societies unlessthe Government lends a helping hand to make the project viable andbeneficial to the members of the societies. I am confident that thearea will bounce back as a formidable business district if theinfrastructure is improved. Needless to add that this requires activesupport from the Government, Municipality and members of thesocieties.

You must have by now received the Municipal tax bills for the 3 yearsended 31 March 2013 based on the capital value of the property asper the Ready Reckoner published by Government of Maharashtra.I hope you have consulted your lawyers and raised your objectionsto the valuation and tax calculations.

Meanwhile we would welcome suggestions from the members toachieve the above goal.

Vice Chairman)

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1. Nariman Point, a “Commercial Zone”, sitting adjacent to theprestigious “Residential Zone”, called “Cuffe Parade”, havingwithin itself, the “Seat of Government” comprising of “VidhanSoudha”, “Mantralaya”, offices of the Chief Minister, offices andresidence of other Ministers, etc.), and with the High Court, theSessions Court, the City Civil Court, and other Courts, dottedon its periphery, has acquired great “Convenience” value, and isa much sought after “address”. Its prosperity attracted theBMC Revenue Officers, envy who assumed that, the highrentals in this locality, warranted a big increase of BMC Taxes,and they decided to amend both the “base” and quantum of“tax”. Thus we saw, first the imposition of high unbearable,unrealistic, property taxes, and then the strict collectionthereof, and consequently the BMC and Nariman Point(Building Societies) are locked in Litigation, which has travelledtwice upto the Supreme Court.

2. Having tasted blood, the BMC, refusing to “rethink” and orrationalise the basics of its revised “Property tax” base and orrate, and instead issued Special Notices to all Nariman PointSocieties, demanding, Property Taxes, for the period 01-04-2010 to 31-03-2013, at three times what they were charging

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Mr. S. M. Kuvelker(Nariman Point Association

First Draft Dt. 07-11-2013

Mr. S. M. Kuvelker(Nariman Point Association

First Draft Dt. 07-11-2013

Part 1 series of article on a calamity called“CAPITAL VALUE SYSTEM OF PROPERTY TAX”

Part 1 series of article on a calamity called“CAPITAL VALUE SYSTEM OF PROPERTY TAX”

There has been a large gap of time between the last quarterlyNewsletter and the current one.

As an editor I have not been able to overcome the difficulties ofpublishing earlier. Now we are organized so that publication isregularised quarterly.

With the help of Managing Committee of the NPA, we have soorganised that all the occupants of offices in the area will get thecopy. I am sure the management of each society of NarimanPoint area, member or not will receive the copy. This has beenaimed at to get greater participation in the activity of NPAincluding suggestions to enhance the value of the Area.

Dear Sir,

The circular letter of the association is being sent to you from timeto time and I am happy that it has received a good response. You areaware that our association is facing an upheal task vis-a-vis thevarious problems faced by our members in particular and the publicwho frequent the Nariman Point area all day long in general.

We are trying our level best to bring some sort of order in traffic, infootpath and the hawker locations. Although we are receiving thenecessary co-operation from the Municipal Corporation, we areunable to do what we wish to do. This area is a prime businessdistrict and has been round from 70's onwards. The planning at thattime was based on limited vision. Naturally the roads and thefootpaths are not in a position to handle the present flow of traffic.

Out of the 32 societies forming part of Nariman Point Associationonly one i.e., NCPA Apartment is a residential and the rest arecommercial. We have in co-operation with Government formedvarious schemes for the betterment of the area. However the costof the schemes is so huge that without active participation of theGovernment and the Municipal Corporation, both in terms offinance and implementation the association is helpless. We are doingour best to get both Government and Municipal Corporationinvolved in the schemes and we are sure that the large number ofcompanies in the public and private sector which are within the areawill make substantial contribution to the scheme at the time ofimplementation.

In its edition dated 17 December, 2012 Mumbai Mirror had a writeup on the problems of Nariman Point particularly regarding the

From the Editor

Bipin Mullaji

An Appeal from the Vice Chairman

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Bipin Mullaji

Wish YouA Happy New Year2014

For Private Circulation

15th Floor, 225, Tel. : 022 2285 2125Jolly Maker Chambers-II, Nariman Point, Mumbai - 400 021,

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earlier; and announced their intent to revise the same upwards,in the near future, from said 300% to higher levels (may-be tentimes), and or on “Capital Value of the Property”. The BMC'shasty conduct, has led to a wasting, contested fresh litigation,and in the Bombay High Court, in the pending Petitions it isbeing argued that this luxurious “property taxes” is“Oppressive”& “Confiscatory”.

3. “Property Tax” touches every one, and therefore its Moral,Financial, Legal etc., aspects, have led to a debate on “correctratable value” concept of “permitted increase of municipal tax”,“mechanism of increase of taxes” etc. These are seriousmatters that require truthful application of mind and heart bythe BMC (of course the BMC has no heart). It is necessary andequitable, that the BMC, as our guardian, having the “bestinterest and welfare of the citizens” as their “motto”, must payattention to facts, appreciate that there are peaceful ways ofcollecting “Revenue”. However this “collection” must behumane, and made without adopting, autocratic attitudes, andor conduct, fraught with litigation. Peace is the need of the day.In this article I shall dwell on the moral and equitable aspects ofthis subject.

4. The BMC justifies its high property tax rates, to the high cost ofServices and Facilities, it provides, therefore it needs morerevenue. But how does a citizen “assess” the correctness of theBMC's claims, on the “true cost” of providing us “drinkingpotable water”, “good roads”, “transport”, “education”,“medical facilities”, “infrastructure” etc.,; and does the BMChave a grand vision for the future growth of this City. All thesefacilities are necessary for the living, growth and security of theresidents. This is our level of “living-comfort”, and we, and ourchildren, are entitled it; and the BMC is bound to continue togive and guarantee to give all this to us in the future too. It isassumed that as “quid pro quo”, for providing us all thesefacilities, for our common, good and comfortable living, wehave to pay, various kinds of taxes. However, in this article weshall restrict to Property Tax only.

5. The Bombay Municipal Corporation Act, authorises the BMCAssessment Officers, in joint meetings with the Builder /Developer, of any property, when the construction of saidproperty is completed, and it is put to use, to fix, “fair lettingvalue” of each unit of the building and thus the “Rateable Value”of the building is determined; once determined this value ispermanent and is the basis of the “Standard Rent” ascontemplated by the Rent Control Act. Since the inception ofthe Bombay Municipal Corporation Act, Mumbai has beensubject to determination of “Rateable value”. Mumbai is alsosubject to the “Rent Control Act”, whereby the letting value,initially fixed, became the “Standard Rent” and was not allowedto be changed by Courts. It is not expected, except in dire /exceptional circumstances, of the BMC, to amend this“standard rent”. The BMC Act also prescribes the procedurefor collection of “Property Tax”

6. And then came the era of “Leave & License” and contractualrents; it was believed that this was an answer to Mumbai's“Housing Problem”. We had two systems of letting properties,namely (a) the “frozen standard rent” and (b) the “contractualrent”. However in both instances the BMC Rateable value,whenever fixed at any point of time in the past, becamepermanent and was not subject to change.

7. The Compensation received upon letting premises onbasis, is not the correct basis for determining the

Rateable Value. The property owner has a fundamental right toput his property to use in such manner as to earn higher income.The higher receipt / income / compensation, is the reward /

Leave &License

profit, of the investor, and the BMC has no right to take that asan excuse for amending the Rateable Value; in this kind oftinkering, a property and its owner will be prejudicially affected.Whether property is let out on Leave & License basis“contractual rent” or on “standard rent” is immaterial to theBMC. It is obvious that legally the BMC has no right; it is alsoobvious that morally the BMC cannot say that it wants a share ofthe rent collected by the Owner. Also it cannot be forgottenthat charges are subject to vagaries of businessvicissitudes. The contractual rent will vary from time to timeand can often be a subject of litigation.

8. The BMC Act provides that whilst computing the tax to becharged, the BMC, MAY, for justifiable reasons, increase byreasonable % points the various components (of the tax)namely the, “Halalkor tax”, “Education Tax”, “Water tax”,“Sewage Cess”, etc. At present the sum total of thesecomponents has aggregated to over 100% of the Ratable Value.However in real terms this increase is not likely to “pinch” theproperty owner. This marginal & insignificantly slight increasewas accepted (though reluctantly) by the Courts, and theProperty Owner was allowed to shift this burden to the Tenantunder the heading “Permitted increase of taxes”. How did thiswork? Where the Ratable Value was Rs. 6,000/- and theaggregate of the Property Tax was 120% of RV ie. Rs. 7,200/- Aminor increase of 10 % point of the taxes would be only Rs. 72/-and the aggregate tax inclusive of the increase at 120 + 10 =132% would be Rs. 7,272/-.

9. However most illegally and absolutely immorally, the BMCrevenue officers claimed that the property tax, in the event theproperty is let on basis at Rs.100,000/-, wouldbe 132% ie. Rs.132,000/-. Thus the property owner, earningcompensation of Rs.100,000/- was required to pay Rs.132,000/,which amount was more than the compensation he earned; theillegality and immorality of the demand is obvious and so also isthe heartless attitude of the Revenue Officers. The Revenue inthis background, in the Supreme Court, was unable to convincethe Hon'ble Judges of the “genuineness of the demand” and justheld up the proceedings. However the BMC took advantage ofthe Court Procedure of requiring an Appellant (revenuematters) to deposit 50% of the “disputed tax demand” beforethe filing / hearing of the Appeals; in this manner the NarimanPoint Societies have been placed at a disadvantage and so arethe citizens. This conduct has left Nariman Point depressed,numb and as good as dead. Today there is a huge vacancy, bothrental and capital values have dropped considerably; there arefew transactions happening. That is why it is correct to say thatNariman Point, once a prestigious place is “going down”.

By,

(NPA Member)

Leave & License

Leave & License

Adv. Baldev U. Idnani,

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Beautification of Nariman Point

In a feeble attempt to beautify the face of Nariman Point, theNariman Point Association inspected Nariman Point area with Mr.Dharasing Pawar, Gardener / Proprietor of Laxmi Enterprises, Mr.Dhruv Dhonde, Supervisor of Laxmi Enterprises, Mr. Karandikar,Asst. Engineer, Garden Dept. BMC 'A' ward and Mr. Sandip Raut, Jr.Tree Officer, BMC 'A' ward. NPA evaluated much scope in the areafor plantation and beautification in the area.

M/s. Laxmi Enterprises, a Horticulturist firm continues its servicesin 14 locations viz., Ambedkar Garden, Worli flyover, Orchid islandin Nariman Point Circle, CBD Belapur, Mahim etc. Being under thecontract of Dr. Vithal Kamat, the garden maintained by Dr. Kamat

manages to secure 1 place every year from BMC for its excellentgardening work. The Traffic island maintained by Dr. Kamat in thecentre of Nariman Point, opposite State Bank of India catchesattention of the most.

In its inspection, NPA planned to sponsor 20 new planters (18” x36”), to be placed in the pavement outside New AdministrativeBldg, State Bank of India and the pavement outside the Two

in Free Press Journal Road with plants viz., BouganVillia and Ixhora.

On a visit with Mr. Pawar and Mrs. Kunti Oza, the Society Managersin Free Press Journal Road were requested to change the plantationoutside their building premises to Bougan Vilia (pink). Further, NPAdecided to change the plants outside Nirmal Bldg to Bougan Viliaand paint the planters outside Nirmal Bldg andin Free Press Journal Road.

On another visit with Mr. Karandikar of Garden Dept., BMC 'A'

ward on 24 September, it was decided that the plantation in thedivider of V. K. Shah Road, the pavement outside MLA Hostel andthe V. V. Rao Road will be maintained by BMC. Mr. Sandip Raut, Jr.Tree Officer on his visit, affirmed to carry on the said work inDecember and branches of trees will also be cut to allow sunshineto the plants.

In the Executive Committee meeting held on 7 October, Mr.Vakharia stated that the RCC planters should bear the name 'NPA'and the planters should not obstruct or make the way narrower forthe Pedestrians to walk. It was resolved that the societies shouldtake the responsibility of planting/ maintaining trees outside theirbuilding premises. Accordingly, NPA intimated the societymembers about the same.

On request of NPA, Mr. B. V. Kopulwar, Director of Public WorkDepartment (PWD) arranged to plant Sadafuli in the empty bedsoutside Vidhan Bhawan in Barrister Rajni Patel Road. Later, in a

meeting on 31 October, 2013; Mr. Kopulwar agreed to maintainthe plants sponsored by NPA outside New Administrative Building.

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Zunka

Bhakar Kendra

Zunka Bhakar Kendra

The Committee decided to carry out beautification work slowly inJamnalal Bajaj Road, Ramnath Goenka Road and V. K. Shah Road dueto the road development project of BMC. The due work on thesame was proposed to commence by the end of December 2013.

Progressively, NPA is in the process to bring flowery and lush greenbeautification in Nariman Point. Let us anticipate a remarkablebeauty to our area.

In view of constructing Promenade from Marine Drive toJamnalal Bajaj Road, the Hon. Chief Secretary of Maharashtra,

Mr. Jayant Banthia did a site visit on 13 July, 2013 with theArchitect R. J. Batliboi, Mr. U P S Madan, MetropolitanCommissioner, MMRDA, Mr. Sitaram Kunte, MunicipalCommissioner, MCGM with other dignitaries. The project isawaiting the clearance of Heritage Committee and the BeachCommittee appointed by the High Court.

The BMC is planning to construct a coastal Road from NarimanPoint to Haji Ali Road. The commencement of the project willbegin on receipt of the Feasibility Report from BMC. A JointTechnical Committee has been appointed by the StateGovernment through a resolution in June 2011. The said projecthas received partial clearance from MCZMA.

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BMC Plans to initiatework from February, 2014.

BMC proposes to develop the Jamnalal Bajaj Road, Free Press

Journal Road, Vinay K. Shah Road, Barrister Rajni Patel Road incement concrete and the Ramnath Goenka Road in mastic. Thework on the same will be initiated in 2013-14, whereas the workon Free Press Journal Road in 2014-15 and work on BarristerRajni Patel Road in 2015-16. The above work depends upon theavailability of contractors.

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News in brief

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Beautification of Nariman Point

News in brief

SOME RECOMMENDATIONS OF THE COMMITTEEThe 35.6 km coastal road’s first link should be from Nariman Point to

Haji Ali. The coastal road should start from the north of the Princess

Street flyover. It should be a shallow tunnel which would connect to a

bored tunnel under Malabar Hill. The tunnel will exit at Napean Sea

Road beyond Priyadarshini Park.

The committee had also recommended some reclamation on the

stretch from Napean Sea Road to Priyadarshini Park.

From Priyadarshini Park till Mahalaxmi temple, the committee has rec-

ommended a coastal road through reclamation.

A connector bridge running around the Haji Ali Darga should connect

this road to the north end of the Haji Ali Bay till the Baroda Palace Point.

In the Worli to Haji Ali section, the committee has recommended a

coastal road on reclaimed land.

Tunnel

Connecterbridge

Coastal

Road

Haji Ali

Malabar Hill

Nariman Point

Worli

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The MTDC has proposed to develop Marina opposite to NCPARoad and decided to make it a Tourist Destination. It alsoenvisages developing the village in Budhwar Park into a 'Koli'village. MTDC is in its initial stages on the said project.

NPA is planning to install new sign boards of “NO U-TURN” inthe Free Press Journal Road. Besides, with the assistance of thetraffic police, NPA is planning to paint the rusted / unclear signboards in Nariman Point.

NPA is in the process of deputing Personnel to monitor the

issues in Jamnalal Bajaj Road and Free Press Journal Road. Themeeting with the respective Government authorities for theirconsent and support is already initiated.

Most potholes that erupted during the monsoon have been

spontaneously filled by the Road Department of BMC, Worli. Allthanks to Mr. Vishal Mhaiskar, Asst. Engineer-Road Dept.,and Mr. Omkar, Jr. Engineer-Road Dept. of BMC, Worli.

Traffic Island in the Centre of Nariman Point opp. State Bank of India

(m )aintained by Orchid Hotel

Traffic Island in the Centre of Nariman Point opp. State Bank of India

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4 Super Graphics : 22624691 / 9869030206

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